:max_bytes(150000):strip_icc()/GettyImages-2193601210-da370d79bbbf4405ae1d8ff03ba105ac.jpg "Robinhood, AppLovin Stocks Soar on News of S&P 500 Inclusion")
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Key Takeaways
- Robinhood Markets and AppLovin shares surged Monday on word they will be added to the S&P 500 prior to the start of trading Sept. 22.
- S&P Dow Jones Indices said the duo and Emcor Group will replace Caesars Entertainment, MarketAxess Holdings, and Enphase Energy. Those three will be shifted to the S&P SmallCap 600 Index.
- The changes were part of S&P Dow Jones Indices’ quarterly rebalancing.
Shares of trading platform Robinhood Markets (HOOD) and mobile marketing provider AppLovin (APP) soared Monday on word they will be added to the S&P 500 Index.
S&P Dow Jones Indices, which sets the membership, announced after the close of trading Friday that the duo and engineering firm Emcor Group (EME) would join the index before the opening bell on Sept. 22 as part of its quarterly rebalancing.
The companies will replace Caesars Entertainment (CZR), MarketAxess Holdings (MKTX), and Enphase Energy (ENPH), respectively. Those three will be shifted to the S&P SmallCap 600 Index.
Shares of Robinhood and AppLovin were up more than 15% and 12%, respectively, in recent trading. Emcor Group stock edged lower.
Stocks of companies included in the S&P 500 can benefit because it exposes them to a wider group of investors who could become aware of them through an index. In addition, they can be added to various index funds that track stocks that are part of the S&P 500.
UPDATE—This article has been updated with the latest share price information.
